Is Xbox One Too Expensive In China?

Microsoft is finally bringing the Xbox to China, but Chinese consumers will have to pay a lot more than their U.S. counterparts to get hold of the long-awaited video game console. And some gamers are already complaining about the price tag.

Reuters

The U.S. game and computer software giant said that the entry price for its Xbox One console, which will go on sale in China Sept. 23, will be 50% higher than its U.S. price. The Xbox One console without the Kinect motion sensor will start at 3,699 yuan ($600), compared with $399 in the U.S. and $436 in Hong Kong, according to Microsoft’s official website. The only market where the Xbox starts at a higher retail price is India, where the console costs at least $665.

The console’s first official release in China comes after the government last year scrapped its 14-year ban on the sale of game consoles. In April, Microsoft announced plans to sell the Xbox One in China through its partnership with a subsidiary of Shanghai Media Group.

But on Chinese social media websites, some consumers are clearly unhappy about the console’s retail price. “Judging from the price, I don’t think Microsoft cares much about Chinese consumers,” said a Beijing-based user named Alex on Sina Weibo, a Twitter-like microblog site. “Do they think the Chinese are rich and stupid?”

Others said they would consider buying it in Hong Kong or other countries. Local technology news site Sina Tech conducted an online poll after Microsoft announced the price of the Xbox One, asking: “Will you buy China’s version of the Xbox One?” Of more than 5,000 respondents, 59% said “no” and 22% said “yes,” while the rest had not decided.

Although game console sales had been officially banned for over a decade in China, consoles were actually available at many computer malls across the country. Still, consoles haven’t really caught on in China, as most gamers have been playing online games on personal computers.

The pricing of the Xbox One is unique to each market based on tax, tariff, exchange rates and other conditions, Microsoft said. By paying a higher price, Chinese consumers will enjoy some privileges that aren’t available in other markets, Microsoft said. The China version of the Xbox One includes unique offerings such as a free six-month Xbox Live Gold membership that comes with some free games and discounts on game purchases, the company said. The console sold in China also comes with a two-year warranty, as opposed to one year in other markets, it said.

Microsoft is also working with Tencent Holdings, a major developer of online games, as well as a Chinese Internet television company so it can eventually start offering localized games and shows to Chinese Xbox users.

China is an attractive but challenging market for U.S. technology companies, especially when commercial and political tensions are escalating between the U.S. and China. Earlier this week, Chinese investigators raided Microsoft offices in four Chinese cities, while a government agency said Microsoft had not disclosed relevant information about some security features and how it ties its software products together.